Reference no: EM131968122
Daniel S. Bean and Jennifer T. Bean have come to you requesting your assistance in preparing their 2017 income tax return. At the initial meeting with you they provided the following information.
Daniel and Jennifer are married and plan to file a joint tax return. Daniel was born on March 2, 1964 and is employed as a toxicologist at the Jasper County Crime lab in Hunt, West Virginia. Jennifer (born on July 7, 1971) was employed as a teacher at St. James High School in Hunt through June 15. On July 1, she accepted a position as a speech and hearing therapist in nearby Flint County working with children diagnosed with speech and hearing deficiencies. This is the second marriage for both Daniel and Jennifer. They married in 2010. Since their marriage, they had been living in Daniel's home located at 1340 Grand Avenue, Hunt, West Virginia 26507. On March 1, 2017, they purchased a new home for $530,000 located at 5500 Dogwood Dr. in the same town that could accommodate their large family. They sold their Grand Avenue home on April 15, 2017 for $480,000 that Daniel had originally purchased on August 1, 1997 for $220,000. (Daniel had purchased his ex- wife's share of the home in the divorce)
Daniel was divorced in 2005 and had two children from his previous marriage with Irene. Samuel Bean is Daniel's oldest son who was born on April 30, 1994. Samuel graduated from State College in May 2017, accepted a position as an IT specialist in nearby Raintree, West Virginia in October and married his high school sweetheart on December 23, 2017. Samuel will file a joint return with his wife who has been working as a marketing specialist with a local advertising agency for all of 2017. Daniel has always provided full support of Samuel including paying for his educational costs at State College until graduation. Samuel had lived with Daniel and Jennifer while attending college and his only source of income was summer employment.
Susan Bean is Daniel's daughter from his previous marriage. She was born on August 18, 1999 and graduated high school in June, 2017. She is working full time at as an assistant editor with the local newspaper and does not plan to attend college at this time.
Walter Bean is Daniel's widowed father (age 75) and has been a member of Daniel's household for the last 3 years. Walter is physically handicapped and is confined to a wheel chair. In order to ease his father's mobility problem, Daniel had a contractor make certain capital additions to his new residence on Dogwood Dr. Wheel chair ramps were installed at the entrances, certain counters were lowered, and guard and hand rails were added to bathroom walls. The improvements cost $15,000. A real estate appraiser friend estimated that the improvements did not increase the resale value of the residence. Walter's sole income is from social security disability payments in the amount of $1,800 per month but Daniel provides most of his father's support.
Jennifer has three children from a previous marriage. In her divorce from her ex-husband Roger Smith in 2006, Jennifer was granted custody of her children. Andrew Smith is her oldest son (born January 1, 1999) but lived with his father (Roger) for the entire year of 2017. Kristen Smith is Jennifer's daughter who was born on September 11, 2001. She recently received her driver's license and resided with Daniel and Jennifer for the entire year of 2017. Jason Smith is Jennifer's youngest son who also lived with them for the entire year. Jason was born on December 10, 2005.
Daniel and Jennifer adopted a daughter, Maria in 2016. Maria was born on February 22, 2013.
In addition, to the above information, on December 27, 2016, Jennifer's widowed mother, Mona Tipton met an untimely end when she was struck by a city bus while crossing a street in downtown Charleston. She died in the intensive care unit on January 8, 2017 at General Hospital. Her final medical expenses of $13,200 and her funeral expenses of $7,700 were initially paid by the Beans from their own funds in February, 2017. Of the $13,200 medical expenses, $6,900 related to services and procedures performed in 2016. Mona was 67 years old when she died. Her birthday was on June 12, 1950. Because the bus driver was clearly at fault, the city offered to settle the matter to avoid a lengthy lawsuit. On December 4, 2017, Jennifer accepted a cash award of $450,000 (net of attorney fees) in satisfaction of her mother's personal injury litigation rights. The city of Charleston also reimbursed Jennifer for 100% of her mother's medical costs and funeral expenses which they paid on January 15, 2018. Under Mona's will, Jennifer is named as sole heir. Prior to her death, Mona lived in an apartment in Charleston, West Virginia but for the past few years, Daniel and Jennifer had provided 75% of her support, while Mona provided only 25% of her own support primarily from social security and personal investments.
The Beans do not wish to contribute to the Presidential Election Campaign Fund. Social Security Numbers are as follows:
Daniel S. Bean: 258-68-4788 Jennifer T. Bean: 317-16-4862 Walter Bean: 452-38-4620 Mona Tipton: 321-45-6234 Samuel Bean: 258-64-8721 Susan Bean: 259-78-9876 Andrew Smith: 456-78-9512 Kristen Smith: 288-90-6541 Jason Smith: 527-65-3204 Maria Bean: 371-65-7890
Prepare the top half of the first page of Form 1040 (through line 6d). If you need additional space for dependents, please include then on a separate sheet attached to the Form 1040.